1. Technical Field
The invention relates to credit scoring. More particularly, the invention relates to a method and apparatus for explaining credit scores.
2. Description of the Prior Art
Recent events have made it desirable for developers of credit scoring algorithms, such as Fair, Isaac and Company, Inc. of San Rafael, Calif. (FICO) to move toward offering a service to deliver credit bureau risk scores and explanations directly to consumers and lenders. Consumer advocacy groups and credit counseling organizations have provided positive feedback on these announced intentions. Additionally, credit scoring developers clients, i.e. the credit grantors themselves, have expressed their understanding of the need to pursue this undertaking. Most organizations are comfortable that each credit scoring developer, such as Fair, Isaac, is the only entity in the market that can actively take on the role of credit score delivery and explanation Note that some clients participate in delivery of scores and explanations through integration with their web sites.
A comprehensive score delivery and explanation service should include all of the following pieces:                Credit scores delivered to consumers.        The primary reason codes that have influenced the score.        Representation of the consumer's credit bureau report from which the score was calculated to allow them to cross-reference the information with his/her actual credit report.        A personalized score explanation that describes to that consumer, in plain language, how their individual score was derived. This explanation service can be further enhanced using data elements present in the consumer's credit report.        
A. Flint, D. Lear, C. St. John, Method and Apparatus for Explaining Credit Scores, U.S. patent application Ser. No. 09/790,453 (Feb. 2, 2001) describe a Web site containing an array of informative resources including for-pay services and extranet functions to serve consumers and traditional players in the financial services industry, including financial counselors, mortgage brokers, direct lenders, large national credit issuers, and third-party credit report re-sellers, plus information seekers such as the press, consumer groups, and government agencies. A primary focus of the Flint et al. invention is to educate consumers, consumer groups, and the consumer press by offering them access to the exceptionally high-quality information, both general and personal, about the practices of collection, storing, reporting, and evaluating consumer credit data.
While the Flint et al. invention provides an excellent framework for a consumer credit score explanation service, it would be advantageous to provide an enhanced method and apparatus for explaining credit scores, for example in connection with a credit score explanation service, in which consumers could identify the sources of information used to establish their credit score, supply their credit report and credit score information in connection with their application for credit-related products and services, such as loans, and determine the effect on their credit score and cost for credit-related products and services based upon various hypothetical changes in their credit behavior.